Ibstock Plc Interim Results Statement - 6 months ended 30 June 2025

06 August 2025

Volumes growing with market recovery; margins expected to build from H2 25

Ibstock Plc (“Ibstock” or the “Group”), a leading UK manufacturer of a diverse range of building products and solutions, announces results for the six months ended 30 June 2025.

The first half reflected a period of strong volume growth, with profitability, as previously communicated, tempered by steps to activate core network capacity to meet recovering demand.
With recent investments in network capacity, strategic investments in the Atlas and Nostell plants and a clear focus on margin management and execution, the Group is well-placed to capitalise on market recovery.
Further volume growth is expected in the second half and the Group continues to expect adjusted EBITDA1 for the full year in the range of £77 million to £82 million.
Further progress made in the Group’s diversified growth strategy, with increasing financial contribution expected within Ibstock Futures from both facades and calcined clay.

Statutory Results

Six months ended 30 June	2025	2024	∆ 1Y	% change
Revenue	£193m	£178m	£15m	+8.6%
Profit before taxation	£8m	£12m	£(4)m	(34.5)%
EPS	1.4p	2.2p	(0.8)p	(36.4)%
Interim dividend per share	1.5p	1.5p	-	-

Adjusted Results¹

Six months ended 30 June	2025	2024	∆ 1Y	% change
Adjusted EBITDA	£36m	£38m	£(2)m	(5.8)%
Adjusted EBITDA margin	18.4%	21.2%	(2.8)%	(13.2)%
Adjusted EPS	3.0p	3.5p	(0.5)p	(14.3)%
Adjusted free cashflow	£(10)m	£(15)m	£5m	+37.8%
ROCE	7.0%	8.0%	(1.0)%	(12.5)%
Net deb	£145m	£138m	£(7)m	(4.8)%

Market recovery drives volume growth

Material growth in Group’s key markets, particularly within the new-build residential market, with UK brick deliveries including imports in the period up by 13% year-on-year
Group revenues increased by 9% to £193 million (2024: £178 million), driven by significant volume growth in Clay, where revenue increased by 12% to £134 million (2024: £119 million). 2 Revenue in Concrete was also marginally ahead of the prior year at £60 million (2024: £59 million)
Pricing progression in the period was modest, reflecting a competitive market backdrop; Clay division experienced a negative mix impact, as a result of the relatively stronger growth in newbuild residential markets
Adjusted EBITDA¹ of £36 million (2024: £38 million) was down by 6%, with an adjusted EBITDA¹ margin of 18.4%, down 280 bps (2024: 21.2%)
Performance reflected lower profitability in the Clay business due to cost inflation, and higher than expected incremental costs associated with restoring network capacity to meet growing market demand
In the Concrete division, the adjusted EBITDA¹ margin was down by 280 basis points to 9.9% (2024: 12.7%), with a negative mix effect from lower rail infrastructure volumes
Ibstock Futures delivered an improved financial performance as all product categories achieved strong progress. Underlying revenues in Futures grew by over 50%, with the new automated cutting line in Nostell delivering a positive profit contribution
Statutory profit before tax was £8 million for the period (2024: £12 million)
Net debt¹ of £145 million at the end of the period was in line with our expectations, with the increase in the period reflecting the planned seasonal investment in working capital. Group reported leverage¹ stood at 2.2x at the end of the period (30 June 2024: 2.0x)
Interim dividend maintained at 1.5p per share (2024: 1.5p) reflecting the Board’s continued confidence in the Group’s prospects

Investing in core and diversified capacity

As the Group transitions to a period of anticipated volume recovery, it has taken measures to restore active capacity at several factories in the Clay network
Production at the new Atlas factory is ramping up well. As a pathfinder factory producing the UK’s first externally-verified carbon neutral bricks, Atlas is pioneering more sustainable and efficient production technologies that can be rolled out Group-wide to deliver further significant carbon intensity reductions Following the successful delivery of Phase 1 of the slips investment at Nostell, the Group is moving towards completion of Phase 2, where good progress is being made with the construction of a larger ceramic facades systems factory. The market response to the first investment in brick slips has been positive
Having concluded extensive technical work over the last three years, the Group is now at a stage to progress its project to realise the potential from calcined clay. Detailed discussions with potential partners are now underway, with a commercial roadmap expected to be concluded by the end of that process.

Current trading and outlook

We have had an encouraging start to the second half of the year.
We anticipate growth in sales volumes in the second half compared to the comparative period, although we remain mindful of broader macroeconomic risk and the potential impact this may have on our markets.
Pricing within the core business is expected to remain stable during the second half, with some potential for positive sales mix as growth within the Group’s end markets rebalances to historic levels over time
We are focused on delivering improved operational efficiency and the disciplined management of costs 3
As a result, the Group expects to achieve adjusted EBITDA¹ in H2 ahead of the comparative period, and continues to expect adjusted EBITDA¹ for the full year to be in the range of £77 million to £82 million
We continue to expect a modest increase in net debt¹ for the full year versus the comparator (Dec 2024: £122 million), with positive underlying free cash flows

Longer term growth outlook

Longer term, the market presents strong growth prospects underpinned by supportive government initiatives, improving affordability metrics and increasing mortgage approval levels
As a result of recent investments in restoring platform capacity, the Group’s active Clay network can now support further significant market growth from current levels without structurally increasing fixed cost
Ibstock Futures expected to make a positive contribution to profits from 2026, as revenue from its market-leading new product offering accelerates
With both core and diversified platforms in place to meet growing demand, and with market recovery underway, the Group has increased confidence in delivering its committed revenue target of £600 million over the medium term
Over the same period, the Group anticipates significant operational gearing benefits, with our focus on cost management across the network, as well as margin uplift over time from volume leverage, sales mix and improved pricing
Following completion of the organic investment programme, the Group expects free cash flow to build from 2026, providing a solid platform for growth and capital returns in the years ahead

Joe Hudson, Chief Executive Officer, commented:

“The new-build residential market showed encouraging signs of recovery in the first half of the year, but activity is still well below normalised levels. As we plan for a period of further market growth, we have invested in restoring core capacity to meet demand. Whilst this has impacted margins in the first half, it will ensure we are able to benefit fully from the recovery as the market progresses.
With both our core and diversified platforms now substantially in place to meet growing demand, I am confident in our ability to deliver on our medium-term revenue goals alongside improvements in profitability and returns driven by margin focus and significant operational leverage through the recovery cycle.”

Capital Markets Events: Ibstock is committed to developing innovative and sustainable ways to build the future and is pleased to confirm that it will be hosting a Capital Markets Day at its Atlas factory in the final quarter of 2025, followed by a visit to its Nostell facility in the first half of 2026. Details to follow.

View the full statement, presentation & webcast on our Reports & Presentations webpage

¹Alternative performance measures are described in Note 3 to the interim financial statements.